Japanese real estate company Tama Home Co. Ltd has formed a joint venture with Developer Group India Pvt. Ltd to invest Rs. 6000 crore in real estate projects in India over the next five years. Developer Group, a 100 percent FDI Company, is headquartered in Singapore and is engaged in the Indian real estate. This joint venture announcement came after the government’s decision last week to ease foreign investment rules in India’s construction market.
This project will include about 10,000 homes across the mid-income and affordable housing segments. As a part of first phase, both the firms will build three housing projects, including two townships, in Ludhiana, Visakhapatnam and Chennai. The townships will be launched in the next four months at Ludhiana and Visakhapatnam. By the mid of 2015, a housing project would come up in Chennai. Overall, these three projects will have 3,500 housing units
David Rebello, Chief Executive Officer, Developer Group stated, “Developer group and Tama Home will together develop about 12-18 projects in the next five years at a cost of about Rs 6,000 crore. Our focus will be on housing segment but we will do other projects as well. The projects will be funded through equity and domestic debt.”
Yasuhiro Tamaki, President and Chief Executive Officer, Tama Home, said, “We want to repeat the Suzuki story in Indian real estate sector. Our joint venture, Tama Home India Pvt. Ltd will work in tandem with Developer Group to bring our design and construction technology to India. We have been planning to enter India since before Prime Minister Narendra Modi came to power.”
The overall cost including land, design, development and overheads is projected to be USD 200 million (around Rs.1,200 crore). The joint venture firm would also look into possibilities of developing smart cities, commercial, hospitality projects.